4. Conclusion
Departing from the conventional or popular wisdom that causerelated products are a win–win–win strategy, we showed that, under some circumstances, they can lead to counter-productive results when the product in question has a socially irresponsible feature. Environmental degradation (or other detrimental effects) may occur as well as a decrease in the efficacy of NPOs because of lower funds. These outcomes can be due to various combinations of several effects, namely increase in consumption of the entire product category, crowding-out of direct donations and the labeling of cause-related products that confuse consumers and create an inflated perception of the donation. Market power is also an important feature for the occurrence of negative side effects after introduction of CRM. Our results show that increase in consumption of the product category and increase in “pollution” are more an issue when CRM is introduced in a market without a high level of competition, i.e., a market with few competitors or with brand allegiance. While the positive effects of cause-related marketing for causes and firms and several success stories have been well documented, we argue that they deserve more academic attention, especially on dimensions that can appear as minor features but can generate firstorder effect.